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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (225985)	3/23/2005 3:32:50 PM
From: TimF	Respond to of 1572073

You are missing one part of the equation, continued benefits = CB No I am not missing anything, at least not anything that you have pointed out. CB should not enter in to the equation. Reduction in Obligation, is the reduction in total benefit payments. When you consider a reduction from a total, you don't add back in the part that isn't reduced. If I'm obligated to give you $10 in two years, and you tell me that I only have to pay $4 back in two years if I give you $4 now, than my reduction in future obligations (RO) is $6. My transaction cost (TC) is $4 and then if I'm borrowing the $4 there is also some interest (I). In this case it is likely that RO > TC + I. RO is $6. TC is $4 and its unlikely that I will be $2 or more unless I'm borrowing from a loan shark. I don't have to, and shouldn't factor in your "continued benefits = CB" (which would be $4). If I do factor it in I get an inaccurate reading. I owe you those $4 either way so they don't factor in to any consideration of the change of my net costs. Even Bush admits that when he says private account do not fix SS. They don't fix it because even if there is a reduction in net total obligation it will be small compared to the overall situation of social security. If my mortgage payment was going to double due to an increase in property taxes telling me how I could save $10 a month would not keep me from being forced to sell my house. I didn't say that personal accounts will fix social security. I just say that they won't hurt much and might help. Either way the hurt or help will be small, it won't be enough to fix SS or to destroy it. Tim